Sat. Australian stocks up strongly on Friday.XJO up +0.74% on...

Sat. Australian stocks up strongly on Friday.

XJO up +0.74% on Friday.

XJO remains within a symmetrical triangle where it seems likely to remain given events on Friday night in the U.S. Watch for a break out of that symmetrical triangle for further significant moves, either up or down.

Large Caps

Large Caps (20 largest stocks in the ASX) up +0.54%. well behind the big rise on the XJO up +0.74%.

Money Flow Index is well below its 50-Day EMA while ILC is above its 50-Day EMA. That means that volume isn't confirming the rise in the ILS. That's a concern and may indicate a coming fall in the Index.

Commonwealth Bank.

CBA is the largest stock on the ASX and it has been on an absolute tear to the upside during November. up >10% in a bit over two weeks.

Up +2.15% on Friday.

Technically it is looking well overbought. RSI is at 77 (70 is overbought) while MACD Histogram is showing a negative divergence.

Dynamic Zone Stochastic is sliding sideways while its Bands have tightened up - that's a sign that a fall is coming in the index.

Money Flow Index is not confirming the rise in CBA with MFI in a consolidation pattern. Another sign that a fall is coming.

Brokers are saying that CBA is over-valued. Here's the fundamental assessment by Morning Star:

Commonwealth Bank of Australia CBA ★

• Moat Rating: Wide
• Fair Value Estimate: $95.00
• Share Price: $149.32 (as at 8/11/2024)
• Price to Fair Value: 1.57 (Overvalued)
• Uncertainty Rating: Medium

Morning Star suggests that CBA is about 150% of Fair Value. Not a great sign for further upside.

Take care.

RB